In response to recent recalls of consumer products, such as food, toys, pet food, clothing and toothpaste, as well as scares relating to E. coli and bovine spongiform encephalopathy (BSE, or “mad cow”) contamination of beef, the average consumer has become acutely aware of a lack of transparency in product supply chains, particularly supply chains that cross international borders.
Even after being notified of a product recall or scare, a consumer has few options other than to discard all items that could potentially be affected, or to risk their own health and safety by continuing to consume or use the potentially affected items. Alternatively, a consumer may choose to blindly trust a particular brand, believing that brand to be sufficiently reputable to look after the consumer's welfare. Thus, the concomitant ignorance that results from the lack of transparency in the supply chain often leads to misplaced confidence or to unnecessary, wasteful knee-jerk reactions.
In the case where a supplier has taken appropriate precautions to safeguard an item in their care, there is typically no mechanism for an end-user to verify these safeguards without performing an invasive or impractical on-site inspection, or an expensive audit. All of these factors may lead consumers to feel generally unsettled about the items they wish to purchase, potentially decreasing the price that a supplier may charge for a high-quality product, and thus presenting a barrier to trade and commerce.